Explicit and implicit cost with example.

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Answer 1

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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1. A doctor quits his job, which pays $77,000 per annum, to open a non-governmental organization (NGO) to serve the needs of orphans. His annual expenses for the NGO amounts to $62,700 for food and daily supplies, $9,400 for maintenance, and $1,800 for books. What is his opportunity cost of opening the NGO? (Show working) 2. During the COVID-19 pandemic, hospitals worldwide faced severe resource constraints, including: a. Limited ICU beds b. Shortage of ventilators c. Insufficient doctors and nurses d. Lack of vaccines in early 2021 Governments and hospitals had to make critical decisions about who receives treatment first and how to allocate limited resources efficiently. In no more than 150 words and using core economic concepts of scarcity, choice and opportunity cost, how would you help your government make these critical decisions?

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Answer 2

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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Answer 3

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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Answer 4

Question

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 6

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 7

Chapter 9, Problem 1DQ

To determine

Explicit and implicit cost with example.

Answer 8

Expert Solution & Answer

Explanation of Solution

Explicit costs are the payments made to the resources in order to attract the resource from other uses. For example, wages to the employees, price for the inputs.

Implicit cost is the given up activity in order to take up the other activity. For example, the owner of the firm has to give up the salary he could earn by getting employed in some other firm, in order to manage his own firm. The opportunity cost of managing his own business is an implicit cost.

The explicit cost of attending college includes all the costs incurred such as college fee, tuition fee, cost of books and other stationeries. This also includes the cost of transportation.

The implicit cost that is involved for the person who go to college is the chance that he loss of getting employed and earn some income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Explicit cost: Explicit cost refers to a direct cost given by the firm to others in the process of running business such as, wages, rents, materials etc. Thus, fixed cost and variable cost are included in the explicit.

Implicit costs: An implicit cost refers to any costs that has previously incurred but are not initially shown or reported as separate expenditures. It refers to an opportunity costthat arises when a firm allocates internal resources.

Answer 12

Ch. 9.2 - Prob. 1QQ Ch. 9.2 - Prob. 2QQ Ch. 9.2 - Prob. 3QQ Ch. 9.2 - Prob. 4QQ Ch. 9.5 - Prob. 1QQ Ch. 9.5 - Prob. 2QQ Ch. 9.5 - Prob. 3QQ Ch. 9.5 - Prob. 4QQ Ch. 9.8 - Prob. 1QQ Ch. 9.8 - Prob. 2QQ

Explicit and implicit cost with example.

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Explicit and implicit cost with example.

Explanation of Solution

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